I am reading about why exactly there is a need for null-characters, and then I found this answer which made somewhat sense to me. It states that it is needed because that char arrays (for the C strings) are often allocated much larger than the actual strings and you thereby need a a way to symbolize the end.
The answer is misleading. That's not really the reason for why null termination is needed. The accepted answer with more upvotes is better.
there would not be a need for the null-character because the array was not any bigger than the string, so of course, it would end at the end of that array.
Let us remind ourselves, that we cannot use arrays as function arguments. Even if we could, we wouldn't want to, because it would be slow to copy an entire array into the argument.
Therefore, there is a need to refer to an array indirectly. Indirection is commonly achieved using pointers (or references). Now, we could have a "pointer to character array of size 42", but that is not very useful because then the argument can only point to strings of one particular size.
Instead, the common approach is to use a pointer to the first element of the array. This is so common pattern that the language has a rule that allows the name of the array to implicitly decay into the pointer to first element.
But can you tell how big an array is, based on a pointer to an element of that array? You cannot. You need extra information. The accepted answer of the linked question explains the options that are available for representing the size, and that the designer of C chose the option that uses a terminating character (which was already the convention used by the BCPL language which C is based on).
TL;DR Size information is needed because there is a need to refer to the string indirectly, and that indirection hides the knowledge about the size of the array. Null termination is one way to encode the size information within the content of the string, and it is the way that was chosen by the designer of the C language.